The UltimateFlying Disc Company considering a new expansion project that requires a fixed asset purchase of $300 that will be incurred today. The fixed asset is expected to last for 10 years and be worthless at the end of its useful life. The depreciable base is the entire amount of investment, and straight line depreciation will be used. The project is expected to generate $580 in cash flows per year and incur $305 in expenses per year, both starting in one year and continuing at the end of each year over the project life. IF the tax rate is 32% and the required rate of return is 8%, what is the net present value of the project? Project NPV $ Place your answer in dollars and cents. Work your analysis using at least 4 decimal places of accuracy. Notes on formatting: Do NOT include a dollar sign or a comma in your NPV. For example, an answer of one hundred twenty dollars and fifteen cents would be placed as 120.15. If applicable, indicate negative amounts with a minus sign in front of the number. I've finished the exam. SUBMIT ANSWER
The UltimateFlying Disc Company considering a new expansion project that requires a fixed asset purchase of $300 that will be incurred today. The fixed asset is expected to last for 10 years and be worthless at the end of its useful life. The depreciable base is the entire amount of investment, and straight line depreciation will be used. The project is expected to generate $580 in cash flows per year and incur $305 in expenses per year, both starting in one year and continuing at the end of each year over the project life. IF the tax rate is 32% and the required rate of return is 8%, what is the net present value of the project? Project NPV $ Place your answer in dollars and cents. Work your analysis using at least 4 decimal places of accuracy. Notes on formatting: Do NOT include a dollar sign or a comma in your NPV. For example, an answer of one hundred twenty dollars and fifteen cents would be placed as 120.15. If applicable, indicate negative amounts with a minus sign in front of the number. I've finished the exam. SUBMIT ANSWER
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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